Home Loan EMI Calculator India 2026
Calculate your exact home loan EMI with the reducing-balance formula Indian banks use. Repo-linked rates start at 7.25% p.a. as of July 2026 (RBI repo held at 5.25% in the June 2026 MPC).
How home loan EMI is calculated
Banks use the reducing-balance method. Each EMI first covers the month's interest on the outstanding principal; the remainder reduces the principal.
P = loan amount r = annual rate ÷ 12 ÷ 100 n = months
Example: ₹40 lakh home loan at July 2026 rates (20 years)
| Interest rate | Monthly EMI | Total interest paid |
|---|---|---|
| 7.25% (SBI floor, w.e.f. Apr 2026) | ₹31,615 | ₹35,87,609 |
| 7.90% | ₹33,209 | ₹39,70,182 |
| 8.25% | ₹34,083 | ₹41,79,830 |
| 8.70% | ₹35,221 | ₹44,53,020 |
How tenure changes your EMI — ₹40 lakh at 7.9%
| Tenure | Monthly EMI | Total interest paid |
|---|---|---|
| 10 years | ₹48,320 | ₹17,98,392 |
| 15 years | ₹37,996 | ₹28,39,194 |
| 20 years | ₹33,209 | ₹39,70,182 |
| 25 years | ₹30,608 | ₹51,82,442 |
| 30 years | ₹29,072 | ₹64,65,998 |
PMAY-U 2.0 interest subsidy (ISS)
First-time urban homebuyers can claim a 4% interest subsidy on the first ₹8 lakh of an eligible home loan under PMAY-U 2.0, worth up to ₹1.8 lakh credited against the loan.
| Category | Annual household income |
|---|---|
| EWS | Up to ₹3 lakh |
| LIG | Up to ₹6 lakh |
| MIG | Up to ₹9 lakh |
Home loan tax benefits (old regime)
Under the old tax regime, a self-occupied house gives you up to ₹2 lakh a year on interest under Section 24(b) and up to ₹1.5 lakh on principal repayment under Section 80C. Neither deduction is available in the new regime, so compare both regimes before filing.
Frequently asked questions
How is home loan EMI calculated?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. For a ₹40 lakh loan at 7.9% for 20 years, the EMI is ₹33,209.
What are home loan interest rates in India in July 2026?
With the RBI repo rate held at 5.25% in the June 2026 MPC meeting, repo-linked home loans at major banks range roughly 7.25%–8.7% p.a. SBI's floor rate is 7.25% w.e.f. April 2026. The next MPC review is in August 2026.
What is the PMAY-U 2.0 interest subsidy?
Under the PMAY-U 2.0 Interest Subsidy Scheme (ISS), eligible first-time urban homebuyers get a 4% interest subsidy on the first ₹8 lakh of the loan, capped at ₹1.8 lakh. Income eligibility: EWS up to ₹3 lakh, LIG up to ₹6 lakh and MIG up to ₹9 lakh annual household income.
What tax benefits do I get on a home loan?
Under the old tax regime you can claim up to ₹2 lakh a year on home loan interest under Section 24(b) for a self-occupied house, plus up to ₹1.5 lakh on principal repayment under Section 80C. These deductions are not available under the new regime.
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